Hey Josh, did you score a new game?

Sure did, sis! The bank upped my credit card limit to $5000.

I’ve maxed it out already!

Wish I had a phone like that. Hey, it's Kaz's birthday soon. I want to get her a pair of jeans like yours

Lena, if I can afford it!

Pretty expensive present! These jeans cost $120!

Kaz always gives me expensive

things.

Woo-hoo! My horoscope says I’m in for a BIG surprise!

JOSH

SAMMIE

MUM

LENA

KAZ

He got this new phone too. You can download

awesome apps for it and surf the Net! Hey Josh, your horoscope came through!

1

You kids seem to have a lot of money

to throw around! Josh, your apprenticeship

doesn’t start for another month ...

How are you paying your bills? And what about the

interest on that credit card?

Chill Mum! I’m doing heaps of shifts at the Pizza Palace.Anyway, YOU buy stuff on

credit all the time!

I'm trying to keep this house running son! We're behind in rent, the car rego is due ...

I hate putting things on credit, but I'm stuck.

Talk to the hand, Mum. C’mon Lena. I’ll drive you home.

Maybe your mum's got a point, Josh – paying off this

car, plus insurance, must cost loads! And you’re using

your mobile heaps ...

Relax babe. I’m a bit behind but I’ll catch up. Anyway, the car came with insurance, so I’m sweet.

Yo, Mario. What’s up?

Thanks for the ride.

2

What the *%#$#!

Sorry about this, mate, but

we’re cutting your shifts at the Pizza

Palace.

But I’ve worked there

for three years!

I can’t afford you, mate. You’re 18 now.

Too expensive!

So much for my surprise.

Bad news, Lena.

I’ve lost my job and …

Oh man. I’d better video call Lena and tell

her.

3

Mum, I need a mobile like Josh’s ... it’s really cool ... but my part time job at the bakery isn’t enough to

pay off a contract. Can you help me?

Sorry luv. Can’t you get a pre-paid? Josh’s phone may look cool but there is nothing cool about a huge

bill every month!

With a pre-paid you buy a phone card from the

newsagent and stay in control of the costs...

Mum’s got a point ... I could save money for other stuff ...

like that holiday for Mum.

Don’t freak out, Mum,but I was in a crash! My car’s a write-off.

Oooh! Thank goodness you're not hurt!

At least you’ve got comprehensive insurance.

Not anymore – I couldn’t keep up with the payments. I thought I was OK with

3rd party personal insurance*, but the cops reckon it won’t cover me for

damage to my car or the car I hit.

It gets worse… I took out a loan to buy the car. So now I have a

debt but no car!

* 3rd party personal insurance (also known as a Green Slip) is compulsory insurance that covers passengers, the other driver, or pedestrians, against injury. To protect the other car you need 3rd party property insurance and to cover your car as well, you need comprehensive insurance. This costs extra, but could save you loads if you have an accident.

Meanwhile ...

4

You need to speak to a financial

counsellor, love.

One week later ...

I wish I could stay at your place, Kaz. Things are pretty

heavy round here ...

Poor Sammie ... but cheer up, only two more sleeps till my birthday! Can’t wait to see what you’re getting me ...

Later ...

And if I save another $30 for only five weeks I can also buy a pre-paid

mobile!

$30 x 5 = $150 (pre-paid phone and credit)

Kaz, my present to you is a night out at the movies with me! And I’ll cook

dinner too ...

If I save $30 a week for six months I’ll have enough for a

holiday for Mum …

Let’s see ... there are 26 weeks in 6 months ... so if I save $30 each week, that works out at ...

26 x $30 = $780 (holiday!)

I'd love that! I'm glad you

didn't say you got me clothes.

Later ... I’m soooo over all the brands.I hate being a walking ad.

Like doesn’t anyone dress like an individual anymore??

A walking ad. That’s so true!

I don’t know if I can afford those jeans for

Kaz, though.

5

The phone company says if you don’t pay your bill they’ll take you to court!

And the interest on your credit card is through the roof ...

plus the car!

It’s OK, Mum ...I spoke to a financial

counsellor.

I’ve called the phone company and the lender and they’ve given me

extra time to pay.

I’ve cancelled my credit card too. I’m going to pay them all

off in small amounts.

Groan ... you’re going to be in debt for years!

Yeah, Mum, but there's no quick and easy way out. I might

already have a bad credit rating* for being behind on my payments, which could stop me buying another car, or even an

apartment when I'm older.

From now on, let’s promise each other to try and save up for the

things we need.

Yeah, we don’t need this stress!

A couple of months later ...

* A bad credit rating is a public record of any unpaid bills (such as gas, electricity or telephone) or loans you might have. Banks, retailers, mobile and credit companies check these records when anyone applies for credit.6

Are you guys going out tonight?

Nah, no money, sis. Most of my pay from my new job goes towards my debts, but they’re

getting smaller.

But at least you’re in a better mood these days

now you’ve sorted out how you’re going to pay your

debts off.

Yeah, and it’s good to be back in control. And in a few months I can start saving for a new car too ...

with full insurance of course!!

Nope ... she’s just about to

find out.

What’s this brochure, kids?

It’s your holiday, Mum! I saved up and bought us two tickets up the coast!

I can't believe it! Thanks Sammie! And a few months ago, I arranged

to have some of my pay transferred to a separate account. Now I’ve got some savings set aside so, Josh can

come too, plus we’ve got some spending money!

UNREAL!

And so... Yeah, and without the monthly bill!Now this is living

to the MAX!

THE END

Six months later ...

TRUE!

Have you told Mum about

her surprise yet?

7

If you get use to handling money when you're our age, you won't get stressed like Mum did. Download the TrackMySPEND app so you can keep track of what you're spending. Then you know where your money is going.

Getting ripped off sucks. If you want a mobile, car finance or credit card, shop around and ask questions.

If bills are coming in, try to pay off the whole balance every month. Otherwise it could take years to pay back.

Watch out for fines. They add up! And if you're buying a car, don't feel pressured to sign up for finance with a car dealer. Suss out your other options with a bank, credit union or building society.

Need help? Get FREE advice!Kids HelpLine: 1800 55 1800LifeLine: 13 11 14Reach Out: ReachOut.com

National Debt Helpline: 1800 007 007The free hotline is open from 9.30am to 4.30pm, Monday to Friday. When you call this number you will be automatically transferred to the phone service in your state.

ACT Legal Aid ACT: 1300 654 314Consumer Law Centre of the ACT: 1800 007 007

NSWFinancial Rights Legal Centre NSW: 1800 007 007Legal Aid NSW: 1300 888 529Redfern Legal Centre: 02 9698 7277

SALegal Services Commission of South Australia: 1300 366 424Consumer Credit Law Centre: 08 8342 1800

VICConsumer Action Law Centre: 1800 466 477 or 03 9629 6300Victoria Legal Aid: 1300 792 387

QLDLegal Aid Queensland: 1300 651 188Caxton Legal Centre: 07 3214 6333

NTNorthern Territory Legal Aid Commission: 1800 019 343

WAConsumer Credit Legal Service WA: 08 9221 7066Legal Aid Western Australia: 1300 650 579

TASConsumer Credit Helpline (Hobart Community Legal Service): 1800 232 500Legal Aid Commission of Tasmania: 1300 366 611

ASIC’s MoneySmart website has calculators, tools and tips to help you manage your money.

moneysmart.gov.au Call ASIC: 1300 300 630 Disclaimer Please note that this is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice.

© Australian Securities and Investments Commission 2015

ISBN 978-0-9806482-9-4 | June 2015

To the Max was produced by Streetwize Communications with funding from the Australian Securities and Investments Commission (ASIC).

Writer: Libby VarcoeArtist: Ross CarnsewProject Manager: Jo Taylor